Saudi Arabia’s Public Investment Fund (PIF) has sold a 10 percent stake in stock exchange operator and owner Saudi Tadawul Group through a secondary share offering, raising $612 million (2.3 billion riyals).
The PIF, which has over $600 billion in assets, offered 12 million shares in Tadawul Group. The offering was successfully oversubscribed by both local and international institutional investors.
Further, this offering is the second largest Accelerated Bookbuild Offering to ever take place in the Saudi market and the GCC region, as per the statement.
The sale is in line with PIF’s strategy to recycle its capital and invest in emerging and promising sectors in the local economy.
The final price for the offering represents a discount of 8.9 percent to the closing share price on the last trading day before the offering, according to the offering documents.
Mr. Eyas AlDossari, Head of Investment Advisory in the MENA Investments Division at PIF, said that, “This transaction is in line with PIF’s strategy to recycle the Fund’s capital and invest in emerging and promising sectors in the local economy.”
Mr. AlDossari further noted that “the strong interest generated from domestic and international investors is indicative of Saudi Tadawul Group Holding Company’s ability to attract a broad base of investors as one of the leading companies listed on the Saudi Exchange.”
PIF said that the success of this transaction is a testament to the attractiveness of the Saudi capital market and demonstrates investors’ confidence in the strength of the Saudi economy.
“The transaction also contributes to increasing the Company’s free float, enhancing the liquidity of the market for both local and international investors and is expected to contribute to the value creation for the Company’s shareholders and the Saudi market as a whole,” as per the statement.
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